How the Use of a CFD Trading App Can Improve Your Trading Strategy

A CFD trading app can be used to perform tricky and time consuming calculations. Especially ones dealing with probabilities and avoidance of excessive risk.

A CFD Trading App is Most Useful in Fast Trading

A CFD trading app can be used to constantly calculate market risk. Risk as defined in your strategy. The running result of the formula used, indicates market risk at that particular time. Based on your trade criteria. And because CFDs are used, the trader can enhance risk management through the use of temporary hedging. Wise CFD traders pay developers to create such apps, of course they go to great lengths to conceal the concept even from the developers themselves. They do this by splitting the formula in two, and employing two different developers to do the job. So it is in fact two different apps, and neither one is very useful on its own. But the two apps together provide that critical probability number. Moreover, successful trading starts by the elimination of market risk. And not by looking for profitable trades right away. It’s not so much about trading online made easy and effortlessly. It is partially about automating routine tasks, but more importantly about achieving accuracy in the calculations.

What a CFD Trading App Can Do

A CFD trading app can work through the numbers and see things that cannot be detected visually on the charts. No matter how good you think you are at visually observing patterns, you can never work this fast in real time. Moreover, probability tends to work in an exponential way. So that small factors can have a huge impact on the net result. Most people are oblivious to the power of mathematics and probability theory. Because they think it’s too abstract and kind of useless in real trading. But in fact, everything in nature is mathematical, and markets are part of nature. People who are ignorant of probability theory tend to have poor judgment and to fall victims to scams, misleading marketing etc. Probability theory is very powerful, but it was practically useless to the average person, prior to the advent of affordable computing power. Today, there’s no excuse, a good probability theory can do all kinds of things. And many trading mistakes can be avoided through probability analysis. All that is needed is the right formulation and developing the app, without giving away the secret.

Look for Guidance from Scientists, Not Traders

Online CFD brokers provide all the infrastructure to start trading. You can have affordable access, like everybody else, but that offers you no edge. The real edge finally comes from working with probabilities and learning how probability is used today to analyze risk. Law enforcement for example does use probability software to catch criminals. All by assessing where a criminal is likely to be, and the routes and hours the criminal is likely to choose to move through. And it does work very well. Because there are limitations in how a criminal can move around. Similarly, there are limitations in how market price can move through time. And different factors of varying relevancy are in control every day.